Improvement in the construction industry

GUS informs that in April 2014 there was an improvement in the overall climate in the construction sector.

According to the data of Główny Urząd Statystyczny (Central Statistical Office), the overall climate in April in the construction industry was on the level minus 7. For comparison, in March it amounted to minus 12. 16 per cent of companies informs about improvement in the business cycle (last month - 14 per cent), and 23 per cent - about deterioration (in March - 26 per cent). The rest of the companies did not notice any changes.

 

The assessments of the current orders on hand, construction and installation production and financial situation are less negative than the ones reported a month ago. In the coming three months, the orders on hand and construction and installation production may increase faster than it was expected in March. Financial forecasts are less pessimistic than the ones formulated last month, according to the announcement by GUS.

 

However, the delays in payment for completed construction and installation works are still noticeable. The data collected by GUS also shows that the planned redundancy may be smaller than the one announced in March.

 

GUS informs also about the barriers felt by the entrepreneurs from the construction sector. The greatest difficulties are related to the labour costs (62 per cent in April this year, 58 per cent in the same month last year) and the competition on the market (57 per cent this April and last year). In comparison with April 2013, the importance of barriers connected to the overall uncertain economic situation has fallen (from 49 per cent to 41 per cent), as well as barriers connected to insufficient demand (form 46 per cent to 41 per cent). However, there was an increase in such barriers as unclear legal provisions (form 26 per cent to 32 per cent) and the labour costs.


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